The Andhra Pradesh government is aiming to create two million jobs over the next five years, with a mix of technology-led investment, skilling initiatives, and industrial expansion, said Nara Lokesh, Minister for Information Technology, Electronics and Communications.
“My only concern is creating jobs, jobs, and more jobs,” Lokesh told Moneycontrol in an exclusive interview. “Everyone today has well-educated children, and they’re all asking one question — where are the jobs?”
The minister said the state’s economic strategy centers on high-value employment, spanning IT, electronics, manufacturing, tourism, and agriculture, supported by new incentive policies designed to attract Fortune 500 companies.
💼 The 99 Paise Land Model: Driving Big-Ticket Investments
At the heart of Andhra Pradesh’s job-creation policy is the ‘99 Paise Land Model’, under which land is leased to large IT and manufacturing companies at ₹0.99 per acre, provided they meet strict job-creation and investment targets.
“Why am I giving land at 99 paise? For 25,000 IT jobs,” Lokesh explained.
“The economic impact on that region is massive. It’s a clear, outcome-based policy — and even court challenges against it were not admitted.”
The policy is integrated with the Land Incentive for Tech Hub (LIFT) Policy 4.0, which sets eligibility conditions such as:
- A minimum market capitalization of $1 billion, or
- A commitment to create at least 3,000 jobs within three years.
So far:
- Tata Consultancy Services (TCS) has been allotted 21.16 acres in Visakhapatnam for ₹0.99 per acre, committing ₹1,370 crore in investment and 12,000 jobs.
- Cognizant has received 21.31 acres, pledging ₹1,582.98 crore in investment and 8,000 jobs.
“These are marquee companies with strong delivery track records,” Lokesh said.
“The LIFT policy ensures accountability — job creation is written into the land agreement itself.”
🏭 Cluster Development and Manufacturing Push
Lokesh said the government is focusing on creating sector-specific industrial clusters to support large-scale manufacturing within 100-kilometre ecosystems, particularly in electronics, EVs, and air-conditioning components.
“If we’re manufacturing air conditioners, we want the screens, camera modules, batteries, boxes, and accessories — everything — to be built within 100 km,” he said.
“That’s the vertical. The horizontal is skilling — ensuring the workforce is ready for assembly and production lines.”
He added that Andhra currently manufactures 50% of India’s air conditioners, and new investments could push that share to 70% in the next few years.
🤖 Preparing for the Future: AI and Quantum Workforce
Lokesh said Andhra Pradesh’s IT strategy is now centered around AI adoption, quantum computing, and digital infrastructure, with ongoing dialogues with the private sector on emerging job opportunities.
“I’m asking the industry where the next wave of jobs will come from,” he said.
“Which parts of AI, which elements of quantum — and what can we do as a state to augment it?”
The state has also launched a skills demand-supply portal, mapping industry needs and training requirements to guide youth employability programs.
“Every country is going through this skill pain point,” Lokesh said.
“Our platform highlights which sectors need upskilling and what specific interventions are required.”
🌐 Job Creation Roadmap (2025–2030)
| Sector | Target Jobs | Key Policy / Initiative |
|---|---|---|
| IT & Electronics | 500,000 | LIFT Policy 4.0, 99 Paise Model |
| Manufacturing | 800,000 | Clusterization Strategy |
| Tourism & Services | 300,000 | Heritage & Coastal Corridors |
| Agriculture & AgriTech | 200,000 | Smart Farming, Food Parks |
| MSME & Skill Hubs | 200,000 | Employment Generation Schemes |
| Total Target | 2,000,000 jobs | By FY2030 |
📊 Vision for a Job-First Economy
Lokesh emphasized that employment generation is the top policy priority under Chief Minister N. Chandrababu Naidu’s government.
“Our vision is to make Andhra Pradesh the employment capital of South India,” he said.
“Every policy — from land to skilling to infrastructure — is built around job creation.”
The minister added that the administration is open to feedback from the private sector to ensure alignment between industrial needs and workforce readiness.
